Correlation Between ProShares Trust and Fidelity Metaverse
Can any of the company-specific risk be diversified away by investing in both ProShares Trust and Fidelity Metaverse at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining ProShares Trust and Fidelity Metaverse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProShares Trust and Fidelity Metaverse ETF, you can compare the effects of market volatilities on ProShares Trust and Fidelity Metaverse and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in ProShares Trust with a short position of Fidelity Metaverse. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Trust and Fidelity Metaverse.
Diversification Opportunities for ProShares Trust and Fidelity Metaverse
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ProShares and Fidelity is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Trust and Fidelity Metaverse ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Metaverse ETF and ProShares Trust is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on ProShares Trust are associated (or correlated) with Fidelity Metaverse. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Metaverse ETF has no effect on the direction of ProShares Trust i.e., ProShares Trust and Fidelity Metaverse go up and down completely randomly.
Pair Corralation between ProShares Trust and Fidelity Metaverse
Given the investment horizon of 90 days ProShares Trust is expected to under-perform the Fidelity Metaverse. In addition to that, ProShares Trust is 3.4 times more volatile than Fidelity Metaverse ETF. It trades about -0.34 of its total potential returns per unit of risk. Fidelity Metaverse ETF is currently generating about 0.03 per unit of volatility. If you would invest 3,023 in Fidelity Metaverse ETF on August 29, 2024 and sell it today you would earn a total of 17.00 from holding Fidelity Metaverse ETF or generate 0.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ProShares Trust vs. Fidelity Metaverse ETF
Performance |
| Timeline |
| ProShares Trust |
| Fidelity Metaverse ETF |
ProShares Trust and Fidelity Metaverse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProShares Trust and Fidelity Metaverse
The main advantage of trading using opposite ProShares Trust and Fidelity Metaverse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Trust position performs unexpectedly, Fidelity Metaverse can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Fidelity Metaverse will offset losses from the drop in Fidelity Metaverse's long position.| ProShares Trust vs. AXS TSLA Bear | ProShares Trust vs. Tuttle Capital Short | ProShares Trust vs. ProShares Bitcoin Strategy | ProShares Trust vs. ProShares UltraShort Bloomberg |
| Fidelity Metaverse vs. Fidelity Crypto Industry | Fidelity Metaverse vs. Fidelity Covington Trust | Fidelity Metaverse vs. ProShares Metaverse ETF | Fidelity Metaverse vs. Fidelity Covington Trust |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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